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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: mishedlo who wrote (3167)12/11/2003 8:01:01 AM
From: russwinter  Read Replies (5) of 110194
 
<Raising interest rates to stop commodity inflation.>

This conversation keeps getting circular, so let me repeat my point clearly: rising interest rates are necessary for two reasons: 1. to defend the USD 2. to at least provide a real rate of return for creditors. On the last point even if you assume the bogus and false inflation rate (minus everything that's inflating) is only 2%, then rates should be at least that. I submit real inflation is already much higher than 2%.

Here's another "rubber meets the road" example (in a long and growing list) of surging input prices. Steel prices, and it goes up on the lab tools section as another runaway inflation (or eventual bust?) indicator:
meps.co.uk
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